Eric Watkins
Oil Diplomacy Editor
LOS ANGELES, Jan. 22 -- Argentina's oil production fell for the seventh straight year in 2008, declining by 1.8% to 230 million bbl, while natural gas output also fell, dropping to 1.77 bcf in 2008 from 1.79 bcf in 2007.
Consultant Economia y Regiones (E&R), which announced the figures, blamed the declines in production on a lack of investment in exploration, saying federal government policies have discouraged private initiatives.
The firm said the trend would not be reversed in 2009 given the world economic slowdown and the fall in global prices for oil and gas. It noted also that many concessions are due to expire in 2016-17, adding further uncertainty to the industry.
E&R said that more than half of Argentina's oil production came from two provinces—Neuquen 25% and Chubut 26%. Two other provinces provided 34% of the country's output: Santa Cruz 18% and Mendoza 16%.
The E&R report said that Neuquen province accounted for 51% of the country's total natural gas output.
Contact Eric Watkins at [email protected].
